Eimskip to buy Norwegian shipping and logistics company Nor Lines
Iceland-based Eimskip has agreed to acquire Norwegian shipping and logistics company Nor Lines, in a bid to offer better services for its customers.
Nor Lines offers scheduled transport services on land and at sea. It is currently operating a service network in Norway to handle general and reefer cargo on sea and land.
According to Eimskip, the operation of Nor Lines has been challenging in recent years and the business will be restructured in order to improve the firm’s services.
With around 200 employees, Nor Lines generates annual turnover of about €110m.
The purchase price is around €15m, and is expected to increase or decrease based on the financial performance of Nor Lines for the year 2016.
Subject to the approval of the Norwegian Competition Authority, the deal is expected to complete in the first quarter of 2017.
Nor Lines provides regular services to and from Norway with the support of land transport system and rail transport system.
It has a fleet of seven cargo vessels that operate three different trade lanes in and out of Norway. Eimskip will adopt five vessels to strengthen the combined service network between Norway, continental Europe and the Baltic Sea.
With a network of 60 terminals, Nor Lines is offering an extensive land operation along the Norwegian coast that connect the trucking and sea operation.
Nor Lines is also offering warehouse operations and freight forwarding services with the support of the network. Its network includes 450 trucks, owned and operated by third party.
In addition, Nor Lines is selling cargo capacity on the 11 vessels of Hurtigruten that operates along Norway’s western and northern coast.
Eimskip president and CEO Gylfi Sigfússon said: “The acquisition of Nor Lines is a large step in widening the service scope and strengthening the current services of Eimskip in Norway.”
Image: Eimskip to acquire Norwegian shipping and logistics company Nor Lines. Photo: courtesy of Chaiwat / FreeDigitalPhotos.net.